The Glencore Merafe Chrome Venture has concluded the detailed terms and conditions of its Negotiated Pricing Agreements with Eskom, giving full effect to the previously approved 62 cents per kilowatt-hour electricity tariff for the South African ferrochrome industry, the venture announced on June 26, 2026.
The conclusion of the NPAs enables the restart of the Boshoek and Wonderkop smelters — two ferrochrome smelting operations that had been unable to operate competitively under the standard Eskom tariff structure. The venture described the NPA conclusion as a critical step in stabilising and rebuilding its smelting operations.
The revised agreements provide a stable three-year electricity pricing framework, giving the venture greater operational flexibility and supporting the sustainable operation of its smelter fleet. The outcome followed extensive collaboration between the venture, Eskom, the National Electricity Regulator of South Africa, government, organised labour, and other key stakeholders.
The Glencore Merafe Chrome Venture is a joint operation between Glencore and Merafe Resources, and is the world's largest producer of ferrochrome — the alloy of chromium and iron used primarily in the production of stainless steel. The venture operates chrome mines and ferrochrome smelters across the Bushveld Igneous Complex in North West and Limpopo provinces. Electricity typically constitutes 30 to 40% of ferrochrome production costs, making the tariff level the primary determinant of smelter viability.
